factual

Is Anago permitted to remove the Collateral from the Premises?

Anago Franchise · 2025 FDD

Answer from 2025 FDD Document

[Item 23: RECEIPTS]

Your Unit Franchise. This list is Our Confidential Information and will not be disclosed by You to any third party.

SECTION 4.9 INSPECTIONS.

You understand and agree that for the protection of the System and Proprietary Marks that quality control is necessary to ensure we and all our Franchisees not only continue growing but deliver the best quality of service. Therefore, You will permit Us and/or Our representatives to enter Your Premises or buildings where You are providing services at any time for purposes of conducting inspections. You will cooperate fully with Us and/or Our representatives in inspections by rendering assistance as we or they reasonably request and by permitting us or them, at our or their option, to observe how You are rendering the services, to confer with Clients and Your employees (provided, however, that if We notice any deficiencies in Your employees' performance, We will notify You of the deficiencies and You, in turn, will correct such deficiencies as described below). We may also remove samples of any products, supplies and materials in amounts reasonably necessary to return to Our office for inspection and record-keeping. The inspections may be conducted without notice at any time. The inspections will be performed in a manner that minimizes interference with the operation of the Anago Unit Franchise. We may videotape the inspections. Upon notice from Us, and without limiting Our other rights under this Agreement, You will take all steps necessary to correct immediately any deficiencies detected during inspections, including immediately stopping use of any equipment, advertising, materials, products, supplies or other items that do not conform to Our then-current requirements. If You fail or refuse to correct any deficiency, We have the right, without You claiming to the contrary, to enter Your Premises or office without being guilty of trespass or any other tort, for the purposes of making or causing to be made all corrections as required, at Your expense, payable by You upon demand.

SECTION 4.10 NOTICES TO US.

[Item 23: RECEIPTS]

EXHIBIT V - COLLATERAL ASSIGNMENT OF CLIENT ACCOUNTS

THISCOLLATERAL ASSIGNMENT OFCLIENT ACCOUNTS this ("Collateral Assignment") is made by and among Anago Franchising, Inc. ("AFI"), and Corp Name ("Subfranchisor").

WHEREAS, Subfranchisor and its Clients are parties to a certain Anago services contract for janitorial and, as applicable, other facilities-related services (the "Client Accounts");

WHEREAS, Subfranchisor and AFI are parties to a Subfranchise Rights Agreement dated, ____________________, (the "Subfranchise Agreement"), whereby Subfranchisor was granted the right to operate an "Anago Subfranchise Business" within a designated area; and

WHEREAS, as a condition to AFI entering into the Subfranchise Agreement, AFI has required that Subfranchisor, and Subfranchisor has agreed to, assign its right, title and interest in the Client Accounts to AFI, with the right to reassign to an authorized Anago subfranchisor, as security for Subfranchisor's obligations and AFI's rights under the Subfranchise Agreement.

NOW THEREFORE, in consideration of the foregoing and the mutual promises contained herein and in the Subfranchise Agreement, and in order to secure Subfranchisor's obligations and AFI's rights under the Subfranchise Agreement, the parties agree as follows:

Source: Item 23 — RECEIPTS (FDD pages 62–298)

What This Means (2025 FDD)

According to Anago's 2025 Franchise Disclosure Document, Anago has specific inspection rights that allow them to remove samples of products, supplies, and materials from the franchisee's premises. This is part of Anago's quality control measures to ensure franchisees deliver the best quality of service.

Anago, or its representatives, can enter a franchisee's premises or buildings where services are provided at any time to conduct inspections. During these inspections, Anago can observe how services are being rendered, confer with clients and employees, and remove samples of products, supplies, and materials for further inspection and record-keeping. These inspections can occur without prior notice and may be videotaped by Anago.

If deficiencies are detected during inspections, Anago requires the franchisee to take immediate corrective action. Should the franchisee fail to correct these deficiencies, Anago has the right to enter the premises and make the necessary corrections at the franchisee's expense. This ensures that all Anago Unit Franchises adhere to the brand's standards and requirements.

Furthermore, the FDD states that as a condition to Anago Franchising, Inc. entering into the Subfranchise Agreement, AFI has required that Subfranchisor, and Subfranchisor has agreed to, assign its right, title and interest in the Client Accounts to AFI, with the right to reassign to an authorized Anago subfranchisor, as security for Subfranchisor's obligations and AFI's rights under the Subfranchise Agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.